Paris-based Cap Gemini Group yesterday reported net income rose 62 percent, from $135 million in 1997 to $219 million in 1998.
Additionally, sales increased 28 percent, from $3.56 billion in 1997 to $4.58 billion in 1998, meeting analyst expectations.
The results mark the company's most profitable year since going public in 1985 and point to strong growth in IT services across Europe, despite the ongoing Asian economic crisis that has impacted software and hardware firms.
In a statement, Cap Gemini said the company expects revenue this year to increase by approximately 20 percent. However, that expectation falls short of the company's 32-percent revenue growth for the first half of 1998.
The global company said concentration on higher-value services as well as a restructuring that more tightly knit its services and consulting units together contributed to the year's rosier results. Over the past year, the company has also worked to integrate its offerings, including package-based applications, outsourcing, and services linked to corporate intranets, knowledge management, and electronic commerce.
This year, Cap Gemini said it plans to strengthen its position in the 20 countries in which it has a presence and focus on acquisitions.